Press Release
VIS Assigns Preliminary Rating to Proposed Short Term Sukuk of Gas & Oil Pakistan Limited
Karachi, March 16, 2026: VIS Credit Rating Company Limited (VIS) has assigned a preliminary rating of ‘A1+(plim)’ (A one plus preliminary) to the proposed Short-Term Sukuk (STS) of PKR 10 billion of Gas & Oil Pakistan Limited (‘GO’ or the ‘Company’). The short-term rating of ‘A1+(plim)’ indicates strongest likelihood of timely repayment of short-term obligations with outstanding liquidity factors. The rating will be finalized upon receipt and review of the final documents for the Sukuk.
GO is an Oil Marketing Company (OMC) involved in the business of procurement, storage, marketing and sale of petroleum and related products. GO has obtained permanent license from Oil and Gas Regulatory Authority (OGRA) to operate as an Oil Marketing Company (OMC) across Pakistan in 2019. The Company has a total retail network of 1,290 sites wherein 80 sites are Company Owned Company Operated (COCO) while the remaining are operated by dealers.
The Company plans to issue a rated, unsecured, privately placed Short Term Sukuk (STS) of up to PKR 10 billion (inclusive of a Green Shoe Option of PKR 2 billion) to finance the on-going working capital requirements. The Sukuk will employ a suitable shariah compliant mode of short-term Islamic Finance facility. Tenor of the instrument is six (06) months from the date of issuance. The expected Profit rate on the instrument will be Base Rate (3M KIBOR) plus a spread of 35 basis points per annum. The profit on the Sukuk will be paid at maturity along with the principal, as a bullet payment.
Assigned ratings incorporates a strong sponsor profile of Aramco Asia Singapore Pte. Ltd (AAS) which has acquired 40% stake in the Company. AAS is a wholly owned subsidiary of Saudi Aramco. Headquartered in Singapore, AAS serves as a regional hub supporting Aramco’s operations across Southeast Asia and Oceania. With the induction of Aramco Asia Singapore Pte. Ltd. (“AAS”) as a shareholder, the Company benefits from AAS’s strong financial standing and its extensive experience in the energy sector. The involvement of AAS has also contributed to strengthening the governance framework through the presence of its representatives on the Board of Directors (BoD) and in key management positions. Resultantly, the Company’s market share has increased significantly, reaching 13%, making it the second-largest OMC in Pakistan in terms of volumetric sales.
The assigned ratings also consider the Company’s business and financial risk profile, which reflects substantial growth in sales and profitability, driven by business expansion which supported by the injection of Rs. 10.6 billion in equity in the form of a right issue, along with increased debt mobilization on the balance sheet. The capitalization profile remains manageable, while the coverage profile is considered satisfactory, with a debt service coverage ratio of 1.71x at end-CY25.
For further information on this ratings announcement, please contact at 021-35311861-64 or email at info@vis.com.pk.
Applicable Rating Criteria: Corporates
https://docs.vis.com.pk/docs/CorporateMethodology.pdf
Instrument Rating
https://docs.vis.com.pk/Methodologies-2025/IRM-Apr-25.pdf
VIS Issue/Issuer Rating Scale
https://docs.vis.com.pk/docs/VISRatingScales.pdf